Home RSS
Real Estate

Manhattan Hedge Fund's $250 Million Bet on Real Estate Could be a Disaster

Alex Finkelstein Real Estate Channel
Manhattan Hedge Fund's $250 Million Bet on Real Estate Could be a Disaster - Manhattan - New York - property market

New York City-based hedge fund operator D.E. Shaw may know Wall Street investments' nuts and bolts but when it comes to commercial real estate, the company could be a big loser.

The Wall Street Journal reports the company may have until the end of this month to come up with enough cash to stave off a foreclosure filing made last month by London-based Barclays LPC and other lenders.

If it fails to do so, Shaw could lose its entire $100 million investment in the $250 million purchase of a 55,000-acre undeveloped site in suburban Albuquerque, NM, according to the WSJ.

D.E. Shaw is known on Wall Street for its obsession with computer-driven investing.

The firm surprised many real-estate deal makers in late 2006 by teaming up with Irvine, CA-based developer SunCal Cos. to buy the dirt--twice the size of Boston.

SunCal claims to be the largest privately owned developer of master-planned and mixed-use communities in the U.S., according to its web site.


Add your comment
  Anonymous comment
  Remember me on this computer

Send me by email any answer to my comment
Send me by email every new comment to this article

Disclaimer: The information presented and opinions expressed herein are those of the authors and do not necessarily represent the views of Estates Report and/or its partners.